Your nest egg means everything to your retirement and you want to protect it through the difficult times. On this mailbag edition of the show, we address concerns about navigating turbulent times while protecting what you have, how much to be saving, is $1 million enough in retirement, and more.
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Click the timestamps below to skip to a specific topic in the episode.
The Combination and Key Points:
The time and effort you put into your retirement plan is done with the goal of building a nest egg that can take care of you and your family for as long as needed.
The three common questions everyone has about a nest egg is how to grow it, how to protect it, and how big does it need to be? These three things happen at different stages of planning, but they’re all essential. This episode will cover each of those thanks to three great listener questions we go over the past month.
The first comes from someone that’s younger with a smaller nest egg, but they want to protect what they have while continuing to grow it during these rough times. How much risk should they take on? The second brings up a good discussion on how much of your income you should be saving each month. There are different guidelines for each person but we always tell people to save until it hurts, which Ben explains on the show. And finally, we have a question from someone that reached retirement with $1 million in the IRA but they’re still worried about running out of money.
As you can see, each of these steps to retirement planning utilize a completely different mindset because of different goals and time horizons. So we’ll do our best to provide some general guidance and information during the show.
We also have a question on repurposing the money from the sale of rental properties. What should you do with that extra money if you decide to move out of rental income?
Our last two emails will address investing options if you make too much for an IRA or a Roth and whether it’s a good idea to work with an investor that won’t retire before you do.
As always, we welcome your questions for a future episode of the podcast. Connect with us here on the website or send us an email directly to firstname.lastname@example.org.
1:55 – Mailbag Question #1: I’m a younger worker with a tiny nest egg with decades of working ahead of me. Given the recent tumult in the global economy, what can I do to protect the little egg that I have but also to continue growing?
3:14 – How much do you worry about someone’s risk tolerance when they are a younger worker?
4:08 – Mailbag Question #2: I’m tired of having five rental properties, so I’m going to sell at least three, and maybe all five. I have quite a bit of equity in these properties, so the question is how should I invest this money after I sell?
6:05 – Mailbag Question #3: I haven’t wanted to pay off my house because it’s one of the few tax deductions I have left. But I do have the money to just pay it off—should I?
7:05 – Mailbag Question #4: I retired two years ago with more than a million dollars in my IRA, which I thought at the time would be more than enough to give me the retirement lifestyle that I want. But it makes me nervous every time I withdraw money from that account because I don’t want to live too long and run out of money. And the recent downturn makes it worse. Am I worrying too much?
8:51 – Mailbag Question #5: I’ve heard that I should be saving 10% of my income toward retirement. Does that sound accurate? I’m in my 50s, so I need to be sure I’m doing this right.
10:17 – Mailbag Question #6: I make too much money to contribute to an IRA or a Roth. What’s the best way for me to save for retirement?
11:50 – Mailbag Question #7: My financial advisor is older than me. Should I move to someone else who won’t retire before I do?
Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!